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April 9, 2025
Question

Can I claim My Aunt and Uncle Living with me as dependent care. They lived in my home rent free so I didn't need to pay day care for my 3 year old grandchild.

  • April 9, 2025
  • 1 reply
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I had two live in nanny's in 2024. Their pay was free rent. Can I claim this expense as dependent care?

    1 reply

    KrisD15
    April 9, 2025

    It depends. 

    Your Aunt and Uncle would need to claim the "free rent" as Self-Employment income on their return. 

    Additionally, they can not also be your dependents. 

     

    According to the IRS:

    "You can count work-related payments you make to relatives who aren't your dependents, even if they live in your home. However, don't count any amounts you pay to:

    1. A person for whom you (or your spouse if filing jointly) can claim as a dependent;
    2. Your child (including stepchild or foster child) who was under age 19 at the end of the year, even if he or she isn't your dependent;
    3. A person who was your spouse any time during the year; or
    4. The parent of your qualifying person if your qualifying person is your child and under age 13."

     

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